Market Maker Spread

外汇网2021-06-19 14:36:10 145

The difference between the price at which a market maker is willing to buy a security and the price at which the firm is willing to sell it (the difference between the bid and ask for a given security). Because each market maker can either buy or sell a stock at any given time, the spad repsents the market maker's profit on each trade.

Market makers are limited in the size of spad they can offer. The bid/ask spad has a maximum size to pvent cheating and manipulation of stock prices.

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